NAHCO records N8.88bn H1 profit

The Nigerian Aviation Handling Company Plc recorded a 166.7 per cent growth in profit after tax to N8.88bn for the half-year ended 30 June 2025, driven by growth in revenue and operational efficiency.

The interim financial statement filed with the Nigerian Exchange on Thursday showed that group revenue doubled by 102.06 per cent from N16bn in H1 2024 to N32.33bn in H1 2025. Gross profit rose 117.7 per cent to N19.16bn, compared to N8.80bn in the same period last year.

Operating profit increased 126.9 per cent from N5.13bn in H1 2024 to N11.64bn in H1 2025, while profit before tax rose 148.2 per cent from N4.75bn to N11.79bn. Earnings per share increased to N4.55 from N1.71.

Profit margins also improved year-on-year. Gross profit margin rose from 55 to 59.26 per cent; operating profit margin increased 36 per cent from 32.06 per cent; and pre-tax profit margin improved 36.5 per cent from 29.7 per cent. Return on total assets climbed from 7.09 per cent to 20.14 per cent, while return on equity jumped 51.09 per cent from 16.59 per cent.

The performance has positioned NAHCO to surpass its 2024 full-year results. For the year ended December 31, 2024, profit before tax stood at N18.70bn, more than doubling the N8.68bn recorded in 2023. Revenue rose 88.5 per cent from N28.40bn in 2023 to N53.54bn in 2024, while gross profit grew to N33.08bn from N15bn.

Operating profit also increased 123.9 per cent to N19.84bn from N8.86bn, reflecting the group’s improved operational performance. NAHCO had declared a 134 per cent increase in dividend for the 2024 financial year, with N11.58bn distributed as cash dividends, equivalent to N5.94 per share, up from N4.95bn in 2023.

Speaking on the performance, Chairman of NAHCO, Seinde Fadeni, said the company was focused on a five-year strategic blueprint aimed at driving revenue above N300bn.

“We are implementing a growth strategy that will enhance our core business while expanding into new sectors. Our goal is to sustain this momentum and meet our N300bn revenue target,” Fadeni stated.

He said the company was also investing in equipment, technology, and staff welfare.

“We have increased staff salaries by 50 per cent and are currently implementing the Oracle ERP and HCM systems to support digital transformation,” he added.

Fadeni also confirmed plans to deepen the company’s diversification by entering the hospitality sector and expanding its commodities export business, noting that the company was re-fleeting its equipment, with a goal to replace all ageing assets by December 2025.

Group Managing Director, Olumuyiwa Olumekun, highlighted the commissioning of the NAHCO Export Packaging and Processing Centre in Lagos and the recertification of key operational stations in Lagos, Abuja, and Kano.

“The export centre, the first of its kind in Nigeria, is a strategic move to position local products for competitiveness globally,” Olumekun said.

He noted that the group would focus on four priority areas, equipment upgrade, digitisation, ESG, and business diversification, to sustain its growth trajectory.

“We are transforming from a ground handling company into a diversified logistics group, committed to delivering value to shareholders,” he added.

Olumekun expressed appreciation to shareholders, staff, and customers for their continued support and pledged stronger performance going forward.